ACOR attends Summer NAPE as an Exhibitor!

NAPE® was founded in 1993 to provide a central arena for oil and gas companies to introduce oil and gas prospects via exhibit booths to energy professionals at all levels of responsibilities including geologists, geophysicists, engineers, landmen, chief financial officers, chief executive officers, and other managers.

Since that time, NAPE has successfully brought state-of-the-art prospects, advanced technology and energy capital formation all together in one location, creating a pure marketplace to establish strategic alliances for doing business and initiating purchasing and trades.

This high-energy event will provide endless networking opportunities and invaluable company exposure.

ACOR management feels that by attending NAPE as an exhibitor, we have laid the ground work to get our prospects explored.

ACOR was overwhelmed with the interest in our Offshore & Onshore Australia prospects, over 16,000 upper management and key decision-makers for oil companies from around the world attended NAPE.

Roger Autrey at ACOR's Booth.

Notice the Major Oil Companies in the Background, we had several complements on how

professional our booth looked.

Kenny Miller & Roy Whiting visit with a client

over 16,000 in attendance at NAPE

Summer NAPE

Kenny Miller visits with a client

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SEC Filings

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                                                            Washington, D.C.  20549

                                                                   FORM 10‑Q

[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

                                              For Quarterly Period Ended June 30, 2011

                                                                            OR

[  ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

                                       For the transition period from                to               .

                                                        Commission File No. 0‑29832

                        AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                                      (Exact Name of Registrant as Specified in its Charter)

   British Columbia, Canada                                                                                                   75‑2712845 

(State or Other Jurisdiction of                                                                                        (I.R.S. Employer

Incorporation or Organization)                                                                                         Identification #)

         1301 Avenue M, Cisco, TX                                                                                                                               76437        

(Address of Principal Executive Offices)                                                                                                            (Zip Code)

                                                                     (254) 442‑2638         

                                        Registrant's Telephone Number Including Area Code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes__X__  No _____

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company.

(   ) Large accelerated filer   (   ) Accelerated filer   (   ) Non-accelerated filer  ( X ) Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  Yes ____  No   X 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

                               There were 20,905,269 shares of common stock, No Par Value,

                                                       outstanding as of July 28, 2011

PART I – Financial Information

Item 1. Financial Statements

Australian-Canadian Oil Royalties Ltd.

Balance Sheets

                                                                                                                June 30,          December 31,

                                                                                                                    2011                  2010      

                                                                                                             (unaudited)             (audited)

Assets

CURRENT ASSETS

   Cash                                                                                                  $         24,908      $          2,345

   Accounts receivable                                                                                      26,187               28,992

            Total Current Assets                                                                             51,095               31,337

PROPERTY AND EQUIPMENT

   Oil and gas properties-being amortized                                                        582,792              582,792

   Oil and gas properties-not being amortized                                                   565,077              565,077

   Office equipment and software                                                                                  24,783               24,783

   Accumulated depreciation and depletion                                                     (239,325)            (216,771)

            Net Property and Equipment                                                               933,327              955,881

OTHER ASSETS                                                                                               1,084                1,084

            TOTAL ASSETS                                                                       $       985,506    $      988,302

Liabilities and Stockholders' Equity

CURRENT LIABILITIES

   Accounts payable – trade                                                                   $              896   $         11,243

   Account payable – related party                                                                     48,542              39,216

   Accrued expenses                                                                                       170,730             115,486

   Loans from stockholders                                                                               26,266               26,266

   Loans from officers                                                                                       25,000              25,000  

            Total Current Liabilities                                                                        271,434             217,211

STOCKHOLDERS' EQUITY

   Preferred stock no par value (50,000,000 shares authorized

        none outstanding)                                                                                            -                        -

   Common stock, no par (50,000,000 shares authorized

        20,905,269 and 20,048,284 shares in 2011 and 2010

         issued and outstanding)                                                                     3,846,099          3,745,099

   Additional paid in capital                                                                             175,152             173,552

   Accumulated deficit                                                                                 (3,307,179)       (3,147,560)

            Total Stockholders' Equity                                                                  714,072             771,091

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $       985,506    $       988,302

See accompanying notes to financial statements.

-1-

Australian-Canadian Oil Royalties Ltd.

STATEMENTS OF OPERATIONS

For the Three Months and Six Months Ended June 30, 2011 and 2010

(Unaudited)

                                                                          Three Months                          Six Months

                                                                   2011                2010                2011                   2010                  

OIL AND GAS REVENUES                    $       14,171      $        (2,906)    $      47,271       $       13,784

COST OF SALES

   Production taxes                                               33                        -                    71                      19

   Transportation costs                                     3,110                 1,263                8,138                  1,263

   Depletion                                                   11,184                 3,695             22,368                 7,391

     GROSS PROFIT/LOSS                               (156)               (7,864)             16,694                 5,111

OPERATING EXPENSES

   Personnel costs                                         33,941                5,313              65,992               16,969

   Professional fees                                       28,081                6,412              37,995               37,597

   Promotion and advertising                            5,287                1,647              11,012                 6,245

   Office expenses                                           1,421                   558                2,709                 2,052

   Depreciation                                                    93                   (345)                 185                    185

   Directors' fees and other                            48,094                   431              48,171                    951

            Total Operating Expenses                116,917               14,016             166,064               63,999

OPERATING LOSS                                    (117,073)             (21,880)           (149,370)             (58,888)

OTHER INCOME/(EXPENSE)

   Interest expense                                        (1,176)                  (289)              (2,339)                  (754)

NET LOSS BEFORE INCOME TAXES        (118,249)              (22,169)         (151,709)              (59,642)

   Australian income taxes                                (399)                 1,717              (7,910)               (2,975)

NET LOSS                                            $ (118,648)        $    (20,452)       $  (159,619)       $     (62,617)

BASIC (LOSS) PER COMMON SHARE   $       (0.01)       $        (0.00)      $        (0.01)      $         (0.00)

Weighted Average Number of Common

  Shares Outstanding:

      Basic                                               20,380,388         19,587,745      20,238,058          19,556,255

See accompanying notes to financial statements.

-2-

Australian-Canadian Oil Royalties Ltd.

STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2011 and 2010

(Unaudited)

                                                                                                                   2011                 2010         

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                                                                                $   (159,619)      $     (62,617)

Adjustments to reconcile net (loss) to net cash

     provided by operations:

            Depreciation, depletion and amortization                                                       22,553                 7,576

            Value of expenses contributed by officers                                          1,600                 1,600

            Stock issued for services                                                                  25,000                       -

            Stock issued for officers and directors                                             26,000                        -

Changes in:

     Receivables                                                                                              2,805                 4,240

     Accounts payable and accrued expenses                                                 54,224               22,738

NET CASH (USED) BY OPERATING ACTIVITIES                                          (27,437)            (26,463)

CASH FLOWS FROM FINANCING ACTIVITIES:

    Proceeds from sale of common stock                                                                 50,000                25,000

NET CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES        50,000               25,000

NET INCREASE (DECREASE) IN CASH                                           22,563                (1,463)

            Cash, Beginning of Period                                                                 2,345                 6,262

            Cash, End of Period                                                                  $    24,908         $      4,799

SUPPLEMENTAL DISCLOSURES:

     Cash payments for:

            Interest                                                                                     $             -        $             -

            Australian income taxes                                                             $      7,910        $      2,975

See accompanying notes to financial statements.

-3-

Australian-Canadian Oil Royalties Ltd.

SELECTED INFORMATION FOR FINANCIAL STATEMENTS

June 30, 2011

(Unaudited)

NOTE 1: BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions of Regulation S-B. They do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information included in the Company's Report on Form 10-K for the year ended December 31, 2010. In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six-month period ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

NOTE 2: GOING CONCERN CONSIDERATIONS

The Company neither has sufficient cash on hand nor is it generating sufficient revenues to cover its operating overhead. These facts raise doubt as to the Company's ability to continue as a going concern. The Company has been operating over the past year based on loans/stock purchases from its officers/directors. There is no guarantee that such officers/directors will continue to provide operating funds for the Company. In order to pursue its goals and commitments under the Australian concession prospects that it has obtained, the Company will be required to obtain significant funding or to exchange all or portions of its interests in those concessions to meet the minimum expenditure requirements underlying the concessions. Management's plans include attempting to find a drilling company to farm out the working interests under the concessions, raising funds from the public through a stock offering, and attempting to acquire additional producing interests in exchange for stock. Management intends to make every effort to identify and develop sources of funds. There is no assurance that Management's plans will be successful.

-4-

Item 2.   Management's Discussion and Analysis and Plan of Operations

Any statements that are contained in this Form 10-Q that are not statements of historical fact are forward-looking statements. Readers can identify these statements by words such as 'may,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'continue' or other similar words. These statements discuss future expectations, contain projections of results of operations or financial condition or state other forward-looking information and are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, including such factors as uncertainties in cash flow, expected costs of litigation, the outcome of litigation, the potential impact of government regulations and rulings, fluctuations in the economic environment and other such matters, many of which are beyond the control of the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements.

The following discussion and analysis should be read in conjunction with the Company's financial statements and notes thereto as of December 31, 2010 and June 30, 2011 for the respective periods then ended.

General Discussion:

The Company’s strategy is two fold: 1) to seek overriding royalty interests in oil and gas concessions within sedimentary basins in Australia, and 2) to seek working interests in oil and gas concessions within sedimentary basins of Australia to promote oil and gas exploration through seismic programs and drilling operations.

The Company’s ability to explore other oil and gas opportunities is dependent on adequate capital resources being available and equity being obtained, and/or finding partners to fund the exploration and drilling programs on the areas in which the Company holds working interests.

The Company holds overriding royalty interests in the Cooper/Eromanga Basins that cover parts of Queensland and South Australia. The Company’s overriding royalties total 488,040 net royalty acres under 13,679,838 gross surface acres in thirteen concessions located in the Cooper/Eromanga Basins. In addition, the Company also owns 3,113 net royalty acres under 672,040 gross acres in four concessions located in the Bass Strait of the Gippsland Basin, located offshore of the State of Victoria, Australia. The Company also has working interests under 7,914,460 gross surface acres covering four concessions located in Queensland and South Australia. 

ACOR began its movement from being primarily an oil royalty company to an exploration company in 2000 when ACOR et al was awarded three large concessions in South Australia.  The risk of exploration was downgraded by the success rate by new junior oil companies in the Cooper/Eromanga Basin averaging 52%.  ACOR entered into a farm-out arrangement with Holloman Energy Corp. to drill three wells retaining a 13.8325% carried working interest. During 2008, Holloman drilled the Pecos #1 well on PEL 112, being the first of the three well program. The Pecos #1 was completed as a dry hole. During 2008 Holloman obtained approval from the South Australian Government for new exploration terms giving a new five-year work program for PEL 112 and consolidating PEL 108 & 109 to a new exploration permit PEL 444. The Company’s terms and conditions mentioned above remain in force on these two permits. Holloman has entered into a joint venture letter of intent with Brandenburg Energy Corp. to conduct a 125 square kilometer 3D seismic program over both PEL 112 and 444 plus drill a total of six wells.  ACOR agreed to reduce its carried working interest from 13.8325% to 8.65% in this new exploration program to be conducted by Brandenburg Energy Corp. on PEL 112 and 444.

ACOR is the concession holder of ATP-582, located in Queensland Australia, in the prolific Cooper/Eromanga Basin. The permit area covers approximately 6,716,000 gross acres.  ATP 582 lies within the Georgina Basin, which covers most of the central-eastern part of the Northern Territory and is considered one of the most prospective undeveloped onshore petroleum provinces in Northern Territory and Queensland.  Although the Georgina Basin has not had a discovery today, the Cambrian Thorntonia-Arthur Creek succession of the Georgina Basin possess all of the required elements necessary for petroleum generation, migration and entrapment.  Of particular interest in the Georgina Basin and on ATP 582 is the presence of the Arthur Shale, which has similar characteristics to the Brakken Shale of Western Canada and North Dakota that has produced more than 10 TCF of gas and 1 Billion barrels of oil.

The improvement in multi high-pressure fracing technology over the past 10 years has made low permeable shale very economic to produce both oil and gas and has been widely used in North America to unlock unconventional reservoirs in shale bearing hydrocarbons.  This technology has not been utilized in the Georgina Basin; however, on the adjoining concession to the east in the Northern Territory two horizontal wells are planned for drilling into the Arthur Creek Shale utilizing the current high pressure multiple stage fracing on this formation.  ATP 582 is well positioned, with the northern most 1,000,000 acres of its 6,716,000 acres known to have the presence of the Arthur Creek Shale in place.

The adjoining concession to the west of ATP 582 operated by Baraka Petroleum Limited plans a four well program and if successful plans to expand to a 20 well exploration drilling program.  The Company has entered into a Joint Venture arrangement where the partner will operate the concession, pay to obtain Native Title clearance, shoot a new seismic grid survey over the leads identified by ACOR management from old seismic data to confirm good drillable targets, with plans to drill a well to earn a 50% working interest under ATP 582 (ACOR will be carried for 50% WI). During the quarter, native title was obtained on ATP582 allowing exploration to begin subject to environmental approvals and clearances.

A 12” pipeline was constructed to the Longtom Field with the first delivery of gas beginning on October 21, 2009.  Revenues from gas sales for the Company began in 2010. During 2010, the Longtom Field was shut in due to mercury levels exceeding gas plant standards.  A processing plant was installed to remove the excess mercury and production from the Longtom Field resumed during the fourth quarter of 2010 (November 2010). Revenues from gas sales for the Company’s 5% of 1% override are expected to be received during the second half of 2011. It was reported that gas sales for the months of May and June 2011 were at record levels with over 3,300,000 MCF produced each month. Offshore works to enhance the reliability of the offshore production system is planned for the second half of 2011, depending on vessel availability. Planning for the drilling of the Longtom South Prospect, located approximately 3.5 kilometers south of the field infrastructure, is also planned during the second half of 2011, subject to rig availability.

ATP 560 covers 625,600 acres under which the Company holds a 25% of 1% override. The Utopia Oil Field is situated in ATP 560P 

in the Eromanga Basin in southwest Queensland, approximately 150 km north east of the Jackson Oilfield and 50 km south of the 

Kenmore Oilfield. The Utopia Field is a broad low-relief structure, with a maximum relief of approximately 10 m. The field produces 

from the Early Cretaceous Murta Formation and is the largest known Murta pool in the Queensland Eromanga Basin. The oil pool 

is at an approximate depth of 1020 m. The most recent technical review of Utopia, undertaken in June 2004, determined the field 

could contain up to 2.86 million barrels of recoverable oil.

During the current quarter Utopia-11H, a horizontal development well, was drilled and completed as a Murta oil producer after a 

176.5-meter horizontal drain hole was successfully drilled. The operator reports excellent oil shows in very good quality reservoir 

sand continued to be encountered while drilling the horizontal leg.  The Utopia-11H well is expected to be placed into production 

during the third quarter.

Liquidity and Capital Resources

The Company has historically addressed its long-term liquidity needs for the oil and gas exploration and development for its Australian working interests through the use of farm-out agreements. The Company sells a portion of its ownership interest in the concession to an outside party who is then responsible for the exploration activities i.e. seismic, drilling etc. This is the strategy that management is following in order to meet the expenditure requirements on the Australian concessions.

In addition, the Company may also satisfy its future capital requirements by selling its common stock.  Should the Company become unable to reach satisfactory farm-out arrangements or obtain financing from the sale of its securities or some other source, the Company may not be able to achieve some of its future goals.

The principal assets of ACOR are oil and gas properties (both those being amortized and those not being amortized) reported at $1,147,869 on June 30, 2011 with no changes since December 30, 2010.  The nominal decrease in assets from December 31, 2010 to June 30, 2011 is related to the increase in accumulated depreciation of property and equipment.

The Total Current Assets increased from December 31, 2010 to June 30, 2011 from $31,337 to $51,095. The Company's Total Current Assets as of June 30, 2010, was $9,709 with Total Current Liabilities of 146,755, giving a liquidity ratio of .066 to 1. The Company's Total Current Assets as of June 30, 2011, was $51,095 with Total Current Liabilities of 271,434, giving a liquidity ratio of .188 to 1. The Company's cash position was $24,908 on June 30, 2011 compared to $2,345 and $4,799 on December 31, 2010 and June 30, 2010 respectively. The fluctuations in current assets from June 30, 2010 compared to December 31, 2010 and June 30, 2011 is directly related to the amount of cash on hand. 

The Company continues to operate without any long-term debt.

Stockholders' Equity decreased when comparing June 30, 2011 to December 31, 2010 being $714,072 and $771,091 respectively, due to an increase in current liabilities.

Management believes that its current cash balance is sufficient to fund immediate administrative needs. However, long-term plans are expected to require significant additional capital and there is not any assurance that the Company will be able to obtain such funds or obtain the required capital on terms favorable to the Company.

During the quarter ended June 30, 2011 the Company issued to an accredited investor 555,556 restricted common shares for $50,000. Also, issued during the quarter were 50,000 shares valued at $11,000 for consulting services, 80,000 shares issued to two directors valued at $16,000, and 71,429 restricted shares issued to the Company’s Chief Financial officer valued at $10,000. The number of shares issued and outstanding as of June 30, 2011 was 20,905,269.

Results of Operations

Revenues of $14,171 were reported for the quarter ended June 30, 2011. Oil and gas revenues accrued from prior periods caused the quarter ended June 30, 2010 to report a negative $2,906 due to an adjustment made during this quarter.  Oil and gas revenues reported for the six months ended June 30, 2011 was $47,271 compared to $13,784 for the six months ended June 30, 2010 reflecting the gas sales from the Longtom Field on VicP54 located in the Bass Strait of the Gippsland Basin of Australia. The Australian revenues were generated from concessions ATP 267, ATP 299, ATP 560, PEL 115 and VicP54 under which the Company hold overriding royalty interests.

Total Operating Expenses were $116,917 for the three months ended June 30, 2011 compared to $14,016 for the quarter ended June 30, 2010.  The principal reason for the increase is caused by personnel costs up from $5,313 to $33,941, professional fees were up from $6,412 to $28,081 and Directors’ fees were up from $431 to $48,094. Personnel costs included fees paid to the Company’s Chief Financial Officer in the form of 71,429 shares of stock valued at $10,000.  Professional fees were up due to accounting and auditing fees incurred for the preparation of the audit and first quarter financial statements.  Directors each received 40,000 shares for their services valued at $8,000 each, of which only two directors elected to receive their shares during the quarter. The shares for the other four directors remain outstanding.

Total Operating Expenses were $166,064 for the six months ended June 30, 2011 compared to $63,999 for the six months ended June 30, 2010.  The principal reason for the increase is due to personnel costs and directors’ fees.  

The Company's three-month operating loss was $117,073 for the quarter ended June 30, 2011 compared to an operating loss of $21,880 for the same period in 2010.  As stated above, the increase in personnel costs, professional fees and directors’ fees caused operating losses to increase.

The Company’s interest expense for the three-months ended June 30, 2011 was $1,176 compared to $289 for the same period ended in 2010. The Company’s interest expense for the six-months ended June 30, 2011 was $2,339 compared to $754 for the six-months ended June 30, 2010.

The net loss for the three months ended June 30, 2011 was $118,648 compared to a net loss of $20,452 for the quarter ended June 30, 2010. The increase in net loss is primarily attributable to the increase in personnel costs, professional fees and directors’ fees. The net loss for the six months ended June 30, 2011 was $159,619 compared to a net loss of $62,617 for the six-months June 30, 2010.

Subsequent Events

There were no significant subsequent events to report since June 30, 2011.

Plan of Operation and Funding

The Company plans to seek additional oil and gas concessions in Australia on a ground level basis and will seek partners to join in this process.  The Company has been successful in the past (2006 and 2007) to enter into farm-out arrangements on concessions awarded to the Company and its partners. These farm-out arrangements have allowed the Company to retain a carried interest and in some cases receive cash consideration in addition to deferring the exploration commitments on concessions to the buyers.

Material Commitments

The Company as of June 30, 2011 does not have any material work or exploration commitments on its oil and gas interests in Australia as the Company has been successful in entering into farm-out arrangements to transfer those exploration costs to others in lieu of cash, carried working interests and/or an override.

Purchase of Significant Equipment

The Company does not intend to purchase any significant equipment during the year.

Related Party Transactions

During the second quarter of 2011, the Company paid $6,441 for personnel costs and other expenses to related parties, primarily Secretarial Services, Inc. and Tensleep Oil & Production, Inc. In addition, the Company reimbursed Australian Grazing & Pastoral Co., Pty. Ltd. for professional fees. Robert Kamon, the Company's Secretary, controls these entities.

Off-Balance Sheet Arrangements

As of June 30, 2011, the Company had no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are a small reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules, regulations and related forms, and that such information is accumulated and communicated to our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As of June 30, 2011, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and our principal financial officer of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Controls

There have been no changes in our internal controls over financial reporting during the quarter ended June 30, 2011 that have materially affected or are reasonably likely to materially affect our internal controls.

PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

Exhibit 31.1 --    Certification of Chief Financial Officer pursuant to Section 302 of the                                          Sarbanes-Oxley Act of 2002.

Exhibit 31.2 --    Certification of President and Chief Executive Officer pursuant to Section 302 of the                   Sarbanes-Oxley Act of 2002.

Exhibit 32 --      Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section                906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

                                                                                    Australian-Canadian Oil Royalties Ltd.

Date: August 5, 2011                                                     /s/ MAHNAZ NOURMAND                                 

                                                                                    By: Mahnaz Nourmand, Principal Financial Officer

EXHIBIT 31.1 -   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATION

I, Mahnaz Nourmand, Chief Financial Officer, certify that:

1.     I have reviewed Form 10-Q of Australian-Canadian Oil Royalties Ltd.;

2.     Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

(a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

(d)  disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent function):

(a)  all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:   August 5, 2011                                       /s/ MAHNAZ NOURMAND                                                                                                   

                                                                        Mahnaz Nourmand, Chief Financial Officer

EXHIBIT 31.2 -   Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATION

I, Andre Sakhai, certify that:

1.     I have reviewed this Form 10-Q of Australian-Canadian Oil Royalties Ltd.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  designed such disclosure controls and procedures, or caused such disclosures controls and procedures to be designed under our supervision, to ensure that material information relating to the  registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

(d)  disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing equivalent function):

(a)  all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

(b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:   August 5, 2011                                                   /s/ ANDRE SAKHAI                                                                                                 

                                                                        Andre Sakhai, President and Chief Executive Officer

EXHIBIT 32. -   Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the                     Sarbanes-Oxley Act of  2002.

CERTIFICATION OF CEO AND CFO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Australian-Canadian Oil Royalties Ltd. (the "Company") for the quarterly period ended June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Andre Sakhai, President and Chief Executive Officer of the Company, and Mahnaz Nourmand, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of their knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly represents, in all material respects, the financial condition and result of operations of the Company.

Dated: August 5, 2011                                                   /s/ ANDRE SAKHAI                                          

                                                                                    Andre Sakhai, President & Chief Executive Officer

Dated: August 5, 2011                                                   /s/ MAHNAZ NOURMAND                                 

                                                                                    Mahnaz Nourmand, Chief Financial Officer

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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